The gap between lower- and higher-income consumers is narrowing, according to The Financial Brand. Spending and wages are growing at similar rates across income groups, more households are paying off credit card balances in full, and checking and savings balances remain above 2019 levels.
For banks, the takeaway is that income alone may not provide a complete picture of a consumer’s financial position. Considering shifts in wages, deposits, spending, and credit repayment could help identify consumers gaining financial momentum and better anticipate their needs.
To what extent does your bank segment customers based on income? Do you use other metrics to identify consumers whose circumstances are improving? How could you use that data to deepen relationships further?